Key Morningstar Metrics for Green Thumb Industries

What We Thought of Green Thumb Industries’ Earnings

Green Thumb Industries’ GTII fourth-quarter revenue grew 5.7% year over year to USD 311 million, benefitting from the September launch of adult-use sales in Minnesota. However, price compression remains a headwind, with comparable sales down 1.8%.

Why it matters: Price compression continues to plague the industry, weakening the revenue generation of the existing footprint. We think there’s an eventual bottom, as prices can’t fall in perpetuity before driving smaller producers to close and reducing competition.

• A stubborn illicit market, an unregulated hemp-derived market, and hemp-derived THC beverages continue to hurt the…